The Whakatāne District Council today asked staff to look for cost reductions in the 2026/27 Annual Plan draft budget, on top of savings already identified, and present another version early next year.

The Council is working through the process to adopt its Annual Plan for 2026/27 by 30 June 2026, as required by the Local Government Act 2002. The plan forms the basis of what the Council commits to delivering for its communities and allows rates to be set for the year.

This Annual Plan is Year Three of the Long Term Plan 2024-2034, which forecasted an average rates increase of 9.4% for 2026/27.

Whakatāne District Mayor Nándor Tánczos acknowledged the considerable saving staff had already found to keep to the projected rates increase despite cost increases faced by council. Staff numbers had been a key focus of those efforts and he said that Council was right to ask staff to find even further reductions.

“It is my strong view that any savings need to be used to reduce the Council deficit. We need to get the costs of servicing debt down, particularly in the face of the rates capping signalled by this government.”

An Annual Plan allows Councils to look at opportunities and to address any unforeseen cost increases to what had been planned for that year of the Long Term Plan.

The Council paper outlined increased operating costs for 2026/27, that would have added 2.5% to rates, which have been offset by overall cost reductions.

The savings thus far have been found in several areas of Council’s operations including Toi EDA funding, the vehicle fleet, waste management, and lower electricity costs achieved through the installation of solar panels on Council buildings. In addition, further savings are proposed by removing 10 new Full-Time Equivalent (FTE) positions that were planned for 2026/27.

Additional savings have been made by reducing the capital expenditure programme by $12m.

The Council noted that formal community consultation on the Annual Plan 2026/27 is not legislatively required, unless variations are significant compared to the Long Term Plan.

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